As comes as no surprise, the U.S. stock market is the largest on the planet, although its share has decreased from half in 2000 to 43% today. During these 18 years, Emerging Markets and in Asia specifically China, have earned increasing market shares.
The U.S. stock market is currently $34 trillion, contrasted with the rest of the world’s $44 trillion capitalization. The U.S. is 43% of world market value, but it houses just 17% of the world’s stocks. The U.S. is 5000 companies when contrasted with 25,000 non-US stocks. U.S. companies are obviously much greater.
The value-weighted normal capitalization of U.S. companies is $176 billion, whereas the normal capitalization of remote companies is less than a fourth of that at $37 billion. This disparity is most noticeable in technology stocks, where relative size has changed overtime. U.S. technology stocks were 2.5 times as large as remote stocks in 2007; U.S. tech stocks had a normal capitalization of $138 billion, versus $50 billion for foreign tech.
But this year U.S. tech stocks are 8 times greater – $347 billion versus $45 billion. U.S. technology dominates the world. The rise of the “super stocks” has preceded market corrections in the past, as scared, but voracious, investors take after the group stampeding to the solace of the gargantuan.
Barclays Bank recently released their world survey of “Cyclically Adjusted Price-Earnings” (CAPE) Ratios. The US stock market is the most expensive in the world, along with Switzerland, Japan and the Netherlands. Of course, that doesn’t mean the US is not worth the price, but it does mean that there are relative bargains in other countries like Russia, Turkey, Israel and Poland. However, if you the see the stock market graph you can judge for yourself.
However, most expensive or largest stock market doesn’t mean the country has the best economy. US does not have the most productive economy and also owes debts to many countries all over the world and international organizations. The GDP of China ($23 trillion) is greater than that of the US ($19 trillion) as of 2017. Thus there is no direct connection between the economy of a country and the stock market.